Direct Materials Purchases Budget

Pasadena Candle Inc. budgeted production of 750,000 candles for the January. Wax is required to produce a candle. Assume 14 ounces of wax is required for each candle. The estimated January 1 wax inventory is 17,100 pounds. The desired January 31 wax inventory is 12,700 pounds. If candle wax costs $1.60 per pound, determine the direct materials purchases budget for January. (One pound = 16 ounces.) Round all computed answers to the nearest whole number. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Pasadena Candle Inc.

Direct Materials Purchases Budget

For the Month Ending January 31

Pounds of wax required for production:

Total units available

Total pounds to be purchased

Unit price$

Total direct materials to be purchased in January$